UPSC Daily News Summary | Current Affairs | Vision IAS

Daily News Summary

Get concise and efficient summaries of key articles from prominent newspapers. Our daily news digest ensures quick reading and easy understanding, helping you stay informed about important events and developments without spending hours going through full articles. Perfect for focused and timely updates.

News Summary

Sun Mon Tue Wed Thu Fri Sat
DPDP Rules may Open New Biz Doors for Regulatory-tech Firms
  • The Economic Times
  • |
  • Polity and Governance
  • |
  • 2025-01-07
  • Digital Personal Data Protection
  • DPDP
  • Digital Private Data Protection Act, 2023

The government's introduction of Digital Personal Data Protection (DPDP) rules is fostering growth for compliance and privacy-focused startups, creating opportunities for regulatory-tech firms.

Digital Personal Data Protection (DPDP) Rules and Opportunities

The introduction of the Digital Personal Data Protection (DPDP) rules by the government is creating new business opportunities for startups focused on compliance and privacy. Regulatory-tech firms and AI-driven privacy ventures are poised to support technology companies in adhering to stringent data processing and storage guidelines.

Key Players and Initiatives

  • Leegality and IDfy:
    • Regulatory-tech firms offering services like encryption and age-gating for data management.
    • Leegality plans to register as a consent manager, leveraging its experience in digital compliance flows, especially in the banking sector.
  • Skyflow:
    • AI-driven privacy venture assisting companies with compliance to GDPR and AI Act.
    • Anticipates increased demand from Indian firms as new regulations are implemented.

Proposed Regulations

  • The draft rules under the Digital Private Data Protection Act, 2023, propose a system for registering consent managers.
  • Consent managers will handle customer data collected by organizations.
  • A minimum net worth of ₹2 crore is required for entities registering as consent managers.

Market Opportunities and Challenges

  • According to Ashok Hariharan of IDfy, the privacy-tech solutions market is expanding rapidly, with significant investments in compliance-focused technologies.
  • The potential market in India is expected to be worth several billion dollars in the next five years.
  • Large corporations with operations in Europe and the US are better prepared for new rules due to their experience with international data regulations.
  • Challenges are greater for local firms, especially small enterprises and startups, which have not yet invested in consent management and data protection.

Industry Perspectives

  • Salman Warris from Techlegis highlights that small enterprises and startups may face significant impacts due to the lack of investment in data protection.
  • Technology-led startups are likely to initially utilize consulting services, with larger corporations following suit.
Subscribe for Premium Features